| As the State-owned Assets Supervision and Administration Commission of the State Council(SASAC)strengthens its assessment of the management level of central enterprises and local state-owned enterprises,SASAC has begun to focus on the ability of enterprises to create value,and the EVA performance evaluation system has been fully implemented in central enterprises since 2010.However,EVA performance appraisal in China is still shallow and incomplete.It is a worthwhile proposition to strengthen our managers’ understanding of EVA performance appraisal system,analyze the existing problems of EVA performance appraisal system and propose solutions.Based on the above background,this paper selects Shanghai Automobile Group Co.,Ltd.(hereinafter referred to as SAIC Group)as the country by using the EVA assessment method in the "Measures for Assessing the Operational Performance of Heads of Central Enterprises" promulgated by SASAC in 2015.There are enterprise cases,calculating the value of SAIC’s EVA from 2014 to 2017,analyzing the existing problems and limitations of state-owned enterprises’ EVA calculation under SASAC’s Measures,and putting forward suggestions.This paper uses literature analysis,comparative analysis,quantitative analysis and case analysis to calculate the case company SAIC Group’s EVA value from 2014 to 2017.By comparing the results with the traditional financial indicators,we can see the advantages of EVA performance evaluation method,but at the same time the current SASAC "method" also.There are the following restrictions: the data used by EVA are generally taken from the company’s historical financial statements,and sometimes these data are not objective,so the calculated EVA is only an approximate estimate;the capital cost rate stipulated in the Measures does not apply to all enterprises,and the operating characteristics of different industries and enterprises are different,so is the capital cost.Therefore,the use of a uniform capital cost rate will affect the accuracy of EVA,but also affect the scientific performance evaluation and management decisions;EVA performance evaluation system does not take into account such as customer loyalty,staff training and other non-financial indicators which have important impact on the future value-creating ability of enterprises.In order to strengthen the guidance of the Measures and promote the EVA performance evaluation of state-owned enterprises,the paper puts up several suggestions as followed: firstly,enterprises should deepen the understanding and application of EVA performance evaluation;on the other hand,due to the incomplete EVA calculation method in the current Measures,this paper suggests that enterprises should combine with the actual situation,according to the characteristics of China’s social organizations.The characteristics of socialist economy,improve its own EVA assessment system,such as considering EVA accounting adjustment projects in many ways,EVA concept to guide salary incentives and so on,optimize the EVA assessment method of state-owned enterprises in line with the characteristics of China’s socialist economy. |
